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MCINTIRE INVESTMENT INSTITUTEAT THE UNIVERSITY OF VIRGINIA

Presented by Avery Tang, Kate Zhou, Peter Wang| 25 November 2012

3D Systems Corp (NYSE:DDD) - Long

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COMPANY OVERVIEW

• Founded in 1986 and headquartered in RockHill, South Carolina

• A leading global provider of 3D printers, 3Dprinting solutions and printer materials forprofessionals and consumers alike

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3• Various principle print engines include multi-

jet modeling, film transfer imaging, selectivelaser melting, and plastic jet printers

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STOCK SUMMARY

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Share Price: 38.04Market Capitalization: 2.17BP/E: 55.86EPS: 0.68EV: 2.12B

52-Week Range: 14.21-46.92Average Volume (3 month): 1.54MCurrent Assets: 3.02BTotal Liabilities: 2.44BEBITDA: 78.37M

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COMPELLING LONG

• Uniqueness of 3D printing

• Huge Market Growth of 3D printing

• Global Expansion of 3D Systems

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• Future Potential of 3D Systems 4

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UNIQUENESS OF 3D PRINTING

• What is 3D printing?3D is called additive manufacturing, which is opposite ofthe traditional manufacturing.

• Process of 3D printing1) Take a digital image, or use designing software2) Break down into little slices3) Replicate these slices one layer at a time with materials

such as metal, glass, rubber or plastics

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UNIQUENESS OF 3D PRINTING

• Importance of 3D printing

1. Manufacturers reduces cost and encourages innovation. applications

e.g. Healthcare industry

2. Low end market enables production of more individualized

products

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NEW TIER-- HEALTHCARE

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HUGE MARKET GROWTH

• Various applications of 3D printingdefenseautomobilemedical devices architecture

• Various ends markets for 3D printingmanufacturers professionals individual consumers

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MARKET POTENTIAL FOR ADDITIVE MANUFACTURING

• According to bloomberg news, the current market is 1.7 billion, and will increase to 105 billion by 2020

• The compound annual growth rate (CAGR) of additive manufacturing was 29.4% in 2011.

• The CAGR for the industry’s 24-year history is 26.4%.

• By 2015, the sale of AM products and services will reach $3.7 billion worldwide, and by 2019, surpass the $6.5 billion mark.

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PERSONALIZED PRINTERS-- CUBIFY

• January 2012: First home 3D printer, the Cube

• Cubify.com, a marketplace and meeting place for 3D designs.

• It provides a business model and platform for individuals and garage-entrepreneurs.

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http://cubify.com/partners/foc/index.aspx

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MARKET POTENTIAL FOR PERSONALIZED PRINTERS

• Revenue from printers increased by $24.2 million, or 79.3%, in 2010 • The increase in revenue from printers in 2010 was primarily the

result of higher volume with a shift toward lower priced personal and professional printers.

• Moreover, the market for lower cost personalized printers has increased dramatically in the recent five years.

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(data from bloomberg)

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GLOBAL EXPANSION OF 3D SYSTEMS

• Main markets include the United State, Europe andthe Asia-Pacific region

• Revenue in countries outside the U.S. accounted for48.9%, 54.7% and 56.6% of consolidated revenue inthe years ended December 31, 2011, 2010 and 2009,respectively.

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GLOBAL EXPANSION OF 3D SYSTEMS

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FUTURE POTENTIAL OF 3D SYSTEMS

• R&DResearch and development expenses were $14.3 million,$10.7 million and $11.1 million in 2011, 2010 and 2009,respectively.

• Intellectual PropertyBy the end of 2011, 3D Systems held 725 patentsworldwide. At that date, 3D Systems also had 257pending patent applications worldwide.

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FUTURE POTENTIAL OF 3D SYSTEMS

• Acquisitions3D Systems acquired twelve businesses in 2011, sevenbusinesses in 2010 and three businesses in 2009

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RISKS

• relatively high evaluation• Competitions• Copyright

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RISK-- COMPETITIONS

• Certain competitors are well established and may have greater financial resources.

• Competitions mainly are from two areas: companies that manufacture machines as well as suppliers of alternative additive manufacturing solutions.

• Solution: introduce new products and services on a timely and cost-effective basis, meet changing customer needs and extend core technologies to new applications.

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Q&A

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